Monday, 22 October 2012

Yen under pressure in Asian trade power

TOKYO: The yen was under pressure in Asia on Tuesday as the euro and dollar touched multi-month highs against the Japanese currency after poor trade data stoked speculation of more central bank easing.

In early Tokyo trade, the dollar briefly climbed above 80 yen for the first time since July before settling back at 79.89 yen, slightly weaker than 79.95 in New York trade late Monday.

The euro, meanwhile, touched its highest levels on the yen since May, hitting 104.44 yen in early trade before dipping back to 104.37 yen, compared with 104.43 yen in New York.

The euro edged higher against the dollar, buying $1.3063 from $1.3060.

The yen, which has been viewed as a safe-haven unit amid turmoil in the US and Europe, lost ground after Tokyo released dismal economic data that spurred speculation the Bank of Japan (BoJ) will soon take further measures to kickstart the economy.

On Monday, Japan posted its worst September trade figures in more than 30 years, as the global slowdown and a territorial spat with China weighed on its export-oriented economy.

Adding to concerns about the economy, the BoJ issued a downbeat quarterly report on Monday that pointed to slowing growth.